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Verdant Avionics makes aircraft instrumentation. Their basic navigation radio requires $140 in variable costs and requires $3,000 per month in fixed costs. If it processes the radio further to enhance its functionality, it will require an additional $30 per unit of variable costs and $300 per month in fixed costs. The marketing manager believes the sales price of the radio can be increased from $250 to $280.  In making this decision, the amount of additional fixed costs per month is a relevant cost. 
A) True
B) False
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Horngren's Financial & Managerial Accounting, The Financial Chapters

Horngren's Financial & Managerial Accounting, The Financial Chapters


Edition: 5th
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